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Housing Minor Construction Projects

Directive Statement

This directive establishes the proper methods to set up minor construction projects from the time the project is requested to the time it is completed for Housing.

Reason for Directive

To establish a standard procedure for how minor construction projects at the University should be handled by departments.

Who must comply?

University of Florida Housing and Residence Education.

New Project Requests

i.ServiceDesk (For housing service requests)

MINOR Construction Projects (Projects less than $2M)

Example – Housing is renovating a portion of one of their Residence Halls. Estimated renovation costs = $750,000

Step 1:  The Housing Master Plan identifies minor projects and major projects for Housing for the next 10-15 years.

Step 2: Every year in the Fall Semester, the Housing Facilities team updates the Master Plan and submits a request to fund minor and major projects for the upcoming year.

  • Requests are submitted to the Housing Senior Director and the Housing Associate Director of Finance.

Step 3:  Project requests are evaluated by the Housing Senior Director and the Housing Associate Director of Finance to determine financial feasibility and confirm alignment with the Housing Master Plan and University strategic goals and initiatives.  A decision is made on which projects are being funded and, if any, which projects are being deferred.

Funding Source: Housing is an auxiliary and all of Housing’s funds are self-generated.  Housing’s revenue is composed of rent collected from undergraduate and graduate residents; revenue from conferences, guest housing, intern housing, and event spaces; revenue from the leasing of space; and others.

Utilization of Funds for Construction:  Construction Accounting will approve the use of this funding source based on State Statutes and UF Policy.  Housing funds that have been approved for construction expenses will be moved into fund code 547, which is unique to Housing.  Construction Accounting will manage the transfer of funds into this fund code and Housing will only be allowed to use account code 787000-Capitalized Construction for transactions originating from fund 547.

Step 4:  The Housing Facilities Team will create a “Project” in the Project Tracker Software and will notify the Housing Associate Director of Finance, who will add a valid funding source.  If the project requires additional department funding, the Housing Associate Director of Finance will route a “budget amendment” for approval along with a valid funding source to Construction Accounting for processing.

Step 5: When notified, Construction Accounting reviews the request and creates any approved projects in the PeopleSoft system.

NOTE: Construction Accounting will create these projects under PC Bus Unit “CONST” but will use the Housing naming convention for the project (HS-FY-Proj. #).

Step 6:  The Housing Facilities Team manages the life of the project and updates the Project Tracker Software (monthly, at the minimum).

Step 7: The Housing Facilities Team notifies the Housing Finance Team that a purchase order is needed.

  • The Housing Finance Team creates a requisition in myUF Market.  Requisitions are routed through UF Procurement Services for proper approvals and oversight.
  • UF Procurement Services issues the purchase orders for the total estimated project costs.

Step 8: Invoices are received by the Housing Finance Team and are then routed to the Housing Facilities Team to review and approve.

  • Once approved, the Housing Finance Team processes the invoices in myUF Payment Solutions.
  • The appropriate ChartField string and “componentization” are entered.
  • All supporting documentation is also uploaded into the system.

Step 9: Construction invoices approved by the Housing Finance Team are automatically routed to Construction Accounting for secondary approval.

  • Construction Accounting reviews invoices for “componentization” to be classified and accounted for as an asset on the University’s books.
  • Once the review is completed, Construction Accounting issues the final approval for payment.

Step 10: Construction Accounting team reviews to ensure monies are available to pay the invoices/breaks downs the invoices for “componentization” to be classified and accounted for as an asset on the University’s books.

Step 11: Invoice is paid.

Step 12:  At the completion of the project, the Housing Director of Facilities and the Housing Associate Director of Finance reviews all transactions on the project and prepares the project closeout report.

  • Once the closeout report is completed, it is submitted to Construction Accounting to review and capitalize in the accounting system.

Housing follows the building capitalization policy for the University.

Definitions

Minor Projects

Construction of new facilities (which encompasses the addition of square footage to existing facilities) and renovation projects costing less than $2,000,000.

Major Projects

Construction of new facilities (which encompasses the addition of square footage to existing facilities) and renovation projects costing more than $2,000,000.

Renovation

Reallocation of existing square footage within the building area and can be classified as a minor or a major project depending on scope.  Does not add square footage to the building area; as defined by the term “addition” in the Florida Building Code (FBC) – Building section.

Remodel

Upgrades to a space within the building area and cannot be classified as a minor project.  Does not change or add square footage to the building area; as defined by the term “addition” in the Florida Building Code (FBC) – Building section.

Repair

Maintenance activities performed by Housing staff and/or 3rd party contractors; which cannot be classified as a minor project.  Routine maintenance, reconstruction, and renewal performed to correct damage and/or deficiencies in existing space.  Repair scope also includes replacement of a component required to maintain occupancy; such as lighting, air conditioning, or similar system.

Draw Schedule

This is a detailed payment plan for a construction project.  The goal is to make progress payments to the contractor as work is completed.

Purchase Order

A contract for the purchase of a good or service.  The process of issuing a PO ensures compliance with purchasing policies, budget checking for available funds, and encumbering of funds in the University’s budget systems.

Componentization

Componentization is the practice of separating the asset into component parts, such as the roof, electrical, HVAC system, flooring, etc.  Each part has a different rate of depreciation based on their physical life.

Last Reviewed

05/01/2020: reviewed content

Contacts

Construction Accounting: (352) 392-5778

Planning, Design and Construction: (352) 273-4000

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